The Pros And Cons Of Corruption In Venezuela And Libya

Decent Essays

Imagine a world where daily planned blackouts and shorter workdays were implemented to conserve energy. For people living in Venezuela and Libya, this is very much the norm. In addition to being two of the most corrupt and politically unstable governments in the world, Venezuela and Libya are plagued with problems surrounding their energy sectors. This is surprising, since they are both globally known for being oil-rich countries. Venezuela had 300 billion barrels of oil reserves in 2016, passing oil-rich Saudi Arabia at 266 billion barrels, Iran at 158 billion, and Iraq at 142 billion. Libya on the other hand, had about 50 billion barrels of reserves in 2015 (OPEC, 2016). So, where does the oil go and why do Venezuelans and Libyans suffer energy poverty if they live in oil-rich regions of the world? Nearly all of it is exported out of the country for profit, leaving many of the local citizens in these two countries empty handed. Corruption revolving around these countries’ oil exports has pairs with political instability and leads to a plethora of economic, political, and social problems.
Problem of State-Ownership of Oil

In Venezuela, one of the biggest economic and political problems regarding oil exports is that Petróleos de Venezuela, S.A. (PDVSA), Venezuela’s major oil and gas company, is state-owned (Schuster, 2017). This means that corruption can run rampant, allowing political leaders to pocket money from exports. Further, since

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